In this issue brief, public finance fellow Jorge Barro finds that lower state income taxation is associated with higher net taxpayer migration. Further, Barro explains that since the passage of the 2017 tax reform, taxpayers and earnings potential have both migrated to lower-taxing states at a faster rate.

To access the full working paper, download the PDF on the left-hand sidebar. 

I. Overview

H.R. 5376, previously known…

With its increasingly diverse tasks and functions, the IRS is in need of change, writes the author. She explores the agency's performance during the COVID-19 pandemic and the challenges it faces in Law360.

A new Senate bill "declares a position on most of the unclear yet critical issues" in regulating cryptocurrency, the author writes, on which industry participants have been requesting guidance for years. What are the key provisions in this bipartisan proposal? Read the post on the Baker Institute Blog.

Entrepreneurs contribute to job growth, innovation and economic resiliency. In this brief, public finance fellow Joyce Beebe reviews five tax benefits commonly used, and sometimes overlooked, by entrepreneurs.

The author reviews key provisions of the retirement bill passed by the U.S. House, considering the impacts on workers. Read the post on the Baker Institute Blog.

Last week, the Joe Biden administration released a long-awaited executive order containing a government-wide outline for digital assets, focusing on cryptocurrency. The guidance is a welcome and timely development for both regulators and investors.

In this working paper, the author examines the economic effects of enacting a proposal by the Biden administration to tax long term capital gains at ordinary income tax rates for those with taxable income above $1 million and tax unrealized gains at the time of death for single (joint) filers with more than $1 million ($2 million) in unrealized gains. A similar version of the report was prepared with the financial support of the Center for Freedom and Prosperity Foundation.

The federal government aims to narrow the $1 trillion gap between cryptocurrency taxes owed and those actually paid. Read how it's doing so in the Baker Institute Blog.

The authors explore a causal relationship between the 2017 tax reform and a decline in wealth inequality.